TyroCity: Business Studies XI Notes

Retention and disposal of records

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Retention of records

Retention is defined as the preservation of records for future reference. It involves collection, preservation, classification and protection of records for future reference. It is maintained in files, computers etc. Every record has a life span. It is protected according to its importance. Retention of record depends upon nature of organization.

Importance

Records are preserved for future reference. The records should be accurate because human mind may forget the information but recording the records is perpetual
Hearsay records cannot be taken as record. Real records and hard copy of records should be maintained that will be helpful in the time of legal disputes.
Human minds cannot store all the information in their brain therefore records are to be maintained. They help in future reference.
Records provide various types of information which help in making decision
Retention helps to delete errors in a record.
It helps in making comparison

Procedure of record retention

1. Classification of records
It helps to determine the value and volume of all the records. It classifies the records according to its importance and usefulness

2. Determination of record retention schedule
It helps in development of retention schedule. The retention period should be pre determined. The period depends on usefulness and legal requirement

3. Transfer of records
It means transferring of records from active file to inactive files. It is useful because the less important files are transferred. The inactive records are shifted to the least expensive storage area.

4. Protection of vital of records
The important records must be protected. They should be protected from firing, damage by water, dust, insects etc.

5. Destruction of records
The useless records are destructed. The records which have values are stored and others are disposed. This helps in creating space

Disposal of records

Once created and used records must be destroyed. The destruction of useless records is called disposal. The records are not retained forever. Office manager must wisely dispose all unnecessary ad useless records. It helps in creation of space.

Importance of public enterprises

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Planned development: Its main aim is to promote economic and social development in the weaker section. It helps to run all the works of development in an efficient manner. It follows government plans and policies. It generally focuses on private sector. It also earns profit. It provides planned development by setting up industries too.

Balanced development: Development works are done in planned and balanced way. It also provides decentralization of industries. It tries to develop all regions in harmonious ways. Balanced development is the main aim of public enterprise.

Accelerating the rate of economic growth: In developing countries, increasing the rate of economic growth always gets the first priority. It tries to remove deficiency of economy. It provides infrastructural facilities for economic development. It provides employment opportunities. Government invests the money. Amount of capital, technical empowerment and other facilities can be easily arranged by the government.

Public utilities: Public enterprises provide the utility of transportation, water supply, irrigation, electricity, communication, education, health facilities and so on to the general public.

Supply essential goods and services: public enterprise provides goods and services to the public at reasonable price. The government helps in manufacture and distribution of goods. These types of services are not done for earning profit.

Provide job opportunities: They help to create the employment opportunities in the society and work as the model employer. They help in uplifting the living standard of the people.

Reducing economic inequality: It removes economic inequality. It helps to develop different regions of the country. Therefore, it maintains living standard of the public.

Establishment of social welfare: They help in planned development and balanced development of the country. They also try in accelerating the rate of economic growth. They are also established for supply essential goods and services. They help in providing job opportunities to many people. They further help in reducing economic inequality. Thus, they establish social welfare.

Incorporation of joint stock company in Nepal

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Following things are to be observed for incorporation of Joint Stock Company in Nepal:

1. File an application
It is the first step. In any company registration, promoters have to file application in company registrar office. The application has to be signed by at least 1 promoter in case of private company and at least 7 in case of public company. Along with application, following document should be submitted,

Memorandum of association
Article of association
Copy of agreement (public company)
Copy of consensus agreement (private company)
License
Promoters certified copy of citizenship (Nepalese)
Permission letter obtained under law to make investment or run business in Nepal (foreigner)
Citizenship of concerned country

2. Submitting registration fee
Registration fee should be deposited in the Nepal Rastra Bank. Voucher is needed for the deposit of registration fee. It should be enclosed in application form

3. Certificate of incorporation:
After submitting the application form along with necessary document and registration fee, the office of the registration examines all these documents submitted by the promoters and it will register company name within 15 days the receipt of the application. After registering the office, the registrar issues the certificate of incorporation to the company. Now a private company can run its business.

4. Certificate of commencement of business
A report of proof about the full payment of shares by the promoters with signature by at least 1 director and 7 promoters must be filled. The registrar examines all the documents. If it gets satisfied then it issues certificate of commencement of business. Then only public company is legally able to run business and it can issue prospectus also.

5. Allotment of shares
After receiving certificate of commencement of business, public company can issue prospectus. It helps to attract investors for investing the money in the company. Then they send application with application money. Generally application form is attached with prospectus. The time of subscription must be kept open for at least 7 days. After receiving application shares are allotted. The BOD makes the allotment. There can be full allotment or pro-rata allotment. Shares must be allotted within 3 months after application is called. There must be more than 50% o share allotment. If allotment couldn’t be made within 3 months then promoters must apply application for extending time with reasons. The time is again extended for 3 months. If company couldn’t allot the share for extended period then the company must return all the money with interest.

Concept and purpose of indexing

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Concept of indexing
Simply, index means indicator or guide. It is anything that indicates guides or points out something. In record management, indexing is defined as indicator or guide for locating, files folders or records. It is the list of names, subjects, or dates which indicate the exact location of letter and documents preserved in files and folders. It helps to provide required information in time. An index should not be confusing. It should be easy to access records.

Purposes

To indicate right position of files and folders
To find files, folders easily
To help in quick location of files and folders
It provides future reference
To increase efficiency of filing

Concept and purpose of filing

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Meaning of filing
It is the process of classifying, arranging and storing record so that they can be located when required. It is also the process o collecting and arranging records or their copies in such a way so that whenever it is needed it could be found very easily. All office receives letters and dispatches that are kept for the future use. They are to be stored in a safe place. For that filing is required. It is an important part of management that helps to decide about anything in a legal and systematic way. It is the process of arranging and protecting records so that they may be found and delivered easily when needed for future.

Purposes:

It helps to keep all records together so the history of office can be understood.
It helps to provide safety place for storage of necessary documents in order to use and locate them when required.
To make records readily and easily available.
It can be used as evidence in case of dispute
It helps in some legal formalities.
It is shown as profit or legal evidence.
It can be presented as a legal document in court.
It helps to make future plans. Past records are the base of future records

Concept of multinational companies

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Multinational companies are those companies whose management, ownership and control are spread in more than one country. It does business in two or more countries. It is a large industrial organization. They are established in one country as parent country and in other countries as subsidiaries or as host countries. They produce and distribute goods and services in all these countries where they operate. The main aim of these companies is to operate business in most of the part of the world. Popular multinational companies of the world are IBM Company (USA), Sony Company. Wai wai, nestle company, coca cola company.

Sources of office information : internal and external

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Internal communication
All the communication that takes place in carrying out works and tasks within a business is known as internal communication. It is helpful for office works. This is the communication that takes place among the business managers, employees and workers to create, implement and to make plans. It helps to maintain coordination. It is classified into inter departmental and interdepartmental It includes letters, memos, reports, announcement, circular etc.

External communication
When people of one organization transmit information to the people of other organization, then that communication is called external communication. It maintains good relationship with outsiders such as supplier, customers etc. It is very important for the business. It is classified into two types: Inward communication and outward communication.

Importance of filing

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Some importance of filing:

It helps in increasing efficiency of office because filing helps in providing records in required time to make quick decisions
Filing helps in protection of important documents from fire, dust, insects, theft and mishandling.
Previous records are base of past records, and they are used as an immediate reference.
It helps in documentation of proof and legal evidence in the time of disputes
It helps in formulation of future planning
It helps in providing legal proofs to fulfill legal formalities
It helps in handling customers and correspondence carefully to maintain the goodwill of the office
It helps in taking feedback.

Trade and Export Promotion Center : Functions

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Trade and export promotion center (TEPC)

Trade and export promotion center is a national trade promotion organization of Nepal. It was established in 2006. It is formed by merging three organizations. They are;

Trade promotion center
Export promotion center
Carpet and wool development board

Its main aim is to prevent foreign trade and export trade. It helps increase country’s export capacity. At initial stage it was limited with few countries. Afterwards, trade was extended with India. It helps to identify, promote trade. It helps in developing new market. It also helps in establishment of relationship between exporter and importer. It tries to maintain positive result. It links Nepalese product in international market.

Functions:

It provides advice to the government of Nepal in formulation of policies for the development and expansion of trade and export
It helps in expansion of export business and increases national economy
It tries to reduce poverty through developing rural economy by enhancing internal and external market for agro based and other products
It conducts programs for increasing the products of exportable products
It assists to diversify trade by identifying potential market for exportable products
It cooperates in operating institutions for export promotion and diversified trade and extend support to such institutions
It pleads for technical assistance with national and international organizations for improving quality and standard of exportable products
It organizes buyer and seller meet and conduct training seminar and workshop
It assists in market test of exportable products
It studies and identifies the problems of foreign trade and advises the government of Nepal with appropriate measures to solve those problems

Rights and duties of partners

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Rights of partners

Every partner has right to take part in planning, implementation and control activities of the firm
Every partner has right to express his opinion, give advices and view on any subject
Every partner has right to inspect and enquire about the account and ask for the duplicate copy
Every partner has right to share the profit according to the agreement
Every partner has right to get interest on loan and advances
Every partner has right to use the properties of the firm but only for the benefit of the firm not or personal use
Every partner has right to leave the firm with consent of remaining partner
Every partner has right to have interest on the property but should not sell the property to anyone without the consent of other partners
Every partner has right to dissolve the firm with the consent of other partners

Duties of the partners

It is the duty of every partners to share the loss occurred in a firm
It is the duty of every partners to work honestly and faithfully and work for common benefit of all partners and firm
It is the duty of every partners to work and make decisions within the authority
It is the duty of every partners to maintain the financial status of the firm.
It is the duty of every partners to stop the leakage in firm. There should not make any secret profit.
It is the duty of every partners to compensate on the loss and damage to firm.

Nepal Chamber of Commerce : Formation and Functions

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

It was established in 1952 (2009 B.S). It was first chamber of commerce of Nepal. It is located in Kathmandu. It plays important role in formulation of commercial and industrial policies of Nepal government. It gives advice to Nepal government time to time. Nepal chamber of commerce involve in social welfare organization. It has good relationship with international organization i.e. WTO, UN. It conducts seminar and training related to business and economy collaboration.

Formation

Any individual firm, Company Corporation engaged in trade, industry and commerce can receive membership of Nepal chamber of commerce. It has introduced 4 types of membership.

Life member
Ordinary member
Affiliated member
Honorary member

All the activities of NCC are planned, programmed and implemented by executive committee includes 36 members. The executive committee is formed by

Elected by general assembly → 29 members
Immediate post president →1 member
Nominated from among affiliated → 4 members
Nominated from general member → 1 member
Nominated by NCC president → 1member President, 1st and 2nd vice president, secretary, general treasurer, 2 secretary and joint treasurers are elected from among elected members of executive committee are the members.

Function

Help in economic development of the country.
Promote and protect the trade, commerce and industries
Maintain good relationship with trading community and industrialist
Develop link with commercial and industrial communities around the world.
Cooperation among all trading, commercial and industrial communities for betterment of economy
Conduct and organize industrial and trade markets and fare
Issue the certificate of origin for Nepalese product
Establish academic institution regarding trade, commerce and industries
Finance technical management
Conduct seminar, training, workshop and research programs

Partnership deed : meaning and contents

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Partnership deed
The written agreement duly signed by the partners is known as partnership deed. It is also known as agreement or article of partnership. It is the document, which mentions the rules and regulations, way of operation of management and way of control of activities of the firm. It is also required at the time of registration. It helps to minimize conflict and misunderstanding among the partners.

Content of partnership deed

Name and address of the firm
Name and address o the partners
Nature of rim’s business
Duration of partnership
Amount of capital invested by the partners.
Interest on capital
Division of profit
Salary and commission
Right and duties of partner
Admission and removal of partnership
Valuation of capital and goodwill at the time of admission, death and retirement of partners
Accounts and audits
Dissolution of partnership.